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July 12, 2026
Pakistan’s Energy City plan is advancing, with foreign interest in oil storage, plus port reforms and shipping upgrades now being pushed alongside it.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry says Pakistan’s proposed Energy City project is moving ahead and has already attracted interest from oil-producing countries looking to store fuel in the country. He said the plan, built around private investment and duty-free re-export, could help Pakistan position itself as a regional energy logistics hub while also supporting domestic energy security.
Speaking at the Lahore Chamber of Commerce and Industry, Chaudhry said private companies would lease government land to develop modern oil storage facilities under the project. The stored fuel could later be re-exported on a duty-free basis, a model the minister said would attract capital the state cannot currently mobilize on its own.
He said the project comes at a time when regional tensions have sharpened interest in alternative storage and supply routes. Several oil-producing countries have shown interest in Pakistan’s plan, according to the minister, who added that the same infrastructure could also be used to meet domestic requirements during emergencies.
Chaudhry tied the Energy City push to a wider maritime overhaul, saying the ministry has already completed more than 100 reform measures. He said Karachi Port Trust and Port Qasim have both improved in global rankings, while Karachi Port has posted a record Rs18.8 billion profit in FY2025-26.
He also pointed to gains at the Pakistan National Shipping Corporation, saying three new vessels have expanded fleet capacity by 40 percent. During the recent crisis, he said, the ministry secured a vessel for $0.8 million that had first been offered at $14 million, helping keep fuel imports moving.
The minister said port charges on transshipment cargo were cut by up to 50 percent during wartime and logistical disruptions. He added that Pakistani ports handled in 24 days the volume of cargo that had previously taken a full year, describing it as evidence of improved operational capacity.
Chaudhry said technical studies for a land-based LNG terminal have been completed, with the project expected to draw $3 billion to $4 billion in investment. He also said a $1.4 billion “Sea 2 Steel” shipbuilding project, new terminals and a revived Manora Shipyard are part of the broader maritime expansion.
